Apple Expects 'Significantly Higher Memory Costs' in June Quarter and Beyond
Apple reported higher memory costs in the March quarter and anticipates significantly increased costs in the June quarter and beyond, impacting its business as existing inventory diminishes. CEO Tim Cook noted the company has partially offset rising costs by using stockpiled memory but will face growing pressure as supplies dwindle. The surge in memory prices is driven by global supply constraints due to heightened demand for AI servers, which are prioritized by chip manufacturers over consumer devices.
- ▪Apple expects significantly higher memory costs in the June quarter and beyond, with increasing impact on its business.
- ▪Tim Cook stated that Apple has been partially offsetting higher memory costs by using stockpiled inventory.
- ▪Memory prices are rising due to global supply constraints caused by strong demand for AI server components.
- ▪Chip makers are prioritizing memory production for AI servers rather than consumer electronics like Apple's devices.
- ▪Cook said Apple is evaluating a range of options to address the rising memory costs but provided no specific details.
- ▪Apple's cost pressures will grow as its existing inventory of memory components runs down.
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Apple Expects 'Significantly Higher Memory Costs' in June Quarter and BeyondThursday April 30, 2026 2:48 pm PDT by Juli CloverApple had higher memory costs during the March quarter, and the impact is expected to get worse as the year goes on. Apple CEO Tim Cook said that Apple is expecting "significantly higher memory costs" in the June quarter, and beyond June, memory costs will "drive an increasing impact" on Apple's business. Cook said the higher memory costs have been partially offset because the company is selling existing inventory that it has stockpiled. As those supplies dwindle, Apple's costs will go up. According to Cook, Apple is going to look at a "range of options" and the company is "continuing to evaluate" the situation.
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